Odeabank begins 2017 with profit

Odeabank begins 2017 with profit

Odeabank, increasing its net profit by nearly 300 percent in 2016, a challenging year, also began 2017 with profitable growth. Odeabank, increasing its net profit by 311.7% to 93 million TL in the first quarter of the year compared to the same period last year, increased its total credits to 27.1 billion TL, deposits to 30.3 billion TL and net assets to 39.5 billion TL.

Odeabank, a subsidiary of Lebanese based Bank Audi in Turkey and a young player in the Turkish banking sector, signaled that it will continue its stable growth in 2017 as well with its first quarter financial results. Odeabank, receiving a 1 billion TL capital investment from international investors last year by displaying growth performance above the sector average, entered 2017 with strong results also.

In spite of fluctuations in foreign currencies, ambiguity in global markets and stagnation during the referendum period in Turkey, Odeabank increased its net profit by 311.7% to 93 million TL, compared to the same period last year. In the same period, Odeabank reached 27.1 billion TL in total credits, increasing its deposits to 30.3 billion TL and net assets to 39.5 billion TL.

”We are proceeding towards our goals with confident steps”

Odeabank General Manager Hüseyin Özkaya, remarked that, with 51 branches and 1676 employees in 16 cities in Turkey, Odeabank ranks 8th among private banks in Turkey terms of deposits and 9th in terms of total assets, adding: “We plan to make 2017 a year we further strengthen our position in the Turkish banking sector, diversify and expand the services we offer and provide added value to the Turkish economy despite the global conjunture that is full of uncertainties. The financial results we obtained in the first quarter of 2017 are evidence that Odeabank is advancing with the correct strategy.”

“In 2017, an increase in inflation and interest rates is expected as well as a gradual recovery in the economy.”

Özkaya, stated that they foresee the possibility of more solid growth in 2017 compared to 2016 regarding global markets, adding that growth based policies might bring higher inflation and interest rates in the long run. Özkaya, idescribed the 2017 outlook of global markets, saying: “The Central Bank of the USA (Fed) increased interest rates at the end of 2016 and continued the gradual increase in the first quarter of 2017, signaling the possibility of two more interest rate increases within the year. While the growth based fiscal policies feed the appetite for risk, no negative effect has been observed in the financial markets due to this path of increased interest rates. The expectation that the improvement in the growth outlook of developed economies will support the recovery of developing economies is taking effect in the world in general. Despite the fluctuations in financial markets, the monetary and fiscal policy stances in the developed economies support the gradual recovery in the global economy.

“Turkish economy will continue to grow with the reforms”

Hüseyin Özkaya, also evaluating the Turkish economy, emphasized that the negative developments and uncertainties experienced in the country in 2016 were factors that delayed the reform process, pointing out that quickly focusing on reforms in 2017 might accelerate Turkey's potential growth in the coming years.

Özkaya continued: “In addition to the increase in global interest rates, geopolitical uncertainties and local political developments that have caused these frailties to continue, yet despite these Turkish financial assets have substantially improved in the first quarter of 2017. The initial results of the first quarter of 2017 signal the continuation of the fluctuations in growth and the frailties in domestic demand, we estimate that the growth rate might be similar to 2016 levels. We believe that in the coming period, additional reforms will be made rapidly to curb inflation and increase potential growth.”​